Skip to content
Search

Latest Stories

Falling rates pound Asians setting off on summer trips

By Nadeem Badshah

HOLIDAYMAKERS going to India are facing a travel headache due to the falling value of the pound against the rupee.


Experts say the sterling has slumped this year and families are getting lower exchange rates on their travels to south Asian for summer trips and weddings.

The growing fears of a no-deal Brexit after October 31 and the prospect of a general election being called by prime minister Boris Johnson have sent shockwaves around the currency markets.

The pound is believed to be the worst-performing major currency in the past few months, resulting in pricier holidays – but is a welcome boost for Indian visitors to the UK.

In the first week of this month, the rate was around Rs 86 to £1.

Phil McHugh, chief treasury analyst at the Currencies Direct exchange firm, said the pound-to-rupee rate has plummeted over 10 per cent since March.

He told Eastern Eye: “Of course the twin risks of an increased likelihood of a no-deal Brexit outcome or the trigger of a general election have been the major drivers which have sent the pound tumbling against a range of currencies, including the rupee.

“That said, the Indian rupee is also gaining in its own right for two reasons. First, many developed central banks are turning dovish and looking at monetary easing in the months ahead, such as the Federal Reserve and the European Central Bank providing traction for the rupee and other emerging market currencies.

“In addition, the re-election of (India’s prime minister) Narendra Modi has pushed the rupee on a positive trajectory, further cementing gains.

“Although it is not all bad news, as the weaker pound provided a real opportunity for the nearly 80,000 tourists coming from India to the UK for holidays.”

The pound also fell against the euro and dollar at the end of July, crashing to a twoyear low at peak holiday time.

And the impact of higher prices is also being felt not only by families shopping for gold jewellery for weddings but also firms who import goods from India.

Jaffer Kapasi, from the East Midlands Chamber, told Eastern Eye: “There are predictions that the exchange rates will continue to fluctuate over the summer and through Brexit at the end of October.

“This means a disastrous impact on the British Indian community, especially those who have shoestring budgets while travelling to India for a wedding or for a holiday.

“Gold prices have increased with little faith in currencies. Some people have already postponed or cancelled their travel plans.”

Kapasi added: “The Indian economy will suffer as it has been very pro-active in promoting tourism, including health tourism.

“Many Indian vegetables are imported, so it will mean drastically increased prices.

“Businesses who import their raw material will suffer, [but] the exporters will benefit in the short run.

“Many commodities manufacturers in the UK rely on imports for their raw material, which again will have a chain impact.”

The chaos around Brexit continued on Monday (5) after health secretary Matt Hancock said he no longer believes parliament will be able to stop a no-deal Brexit amid rumours that Johnson is preparing for a snap election.

Hancock had previously said that “nodeal will not happen whether people want it or not” as MPs would block it.

But when asked on Monday whether he thought a no-deal exit could still be stopped, he said: “I now don’t think it can. When the facts change, even as a politician, you have to change your mind”.

Sana Ahmad,29, a finance worker in London, said the pound-to-rupee rate has affected wedding plans and charity donations.

She said: “People are holding off to buy their gold in India for the wedding season hoping the situation will improve.

“They are disappointed as they won’t get value for money as the rate is not as high any more. They are feeling a bit bummed.

“They are holding back spending, it has been the case for a while now.”

She added: “Muslims send zakat charity to the poor in India. However, people have been waiting so their donation goes further.”

More For You

UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less
Rosneft in early talks to sell India refinery stake to Reliance

Reliance Industries chairman Mukesh Ambani (Photo: Getty Images)

Rosneft in early talks to sell India refinery stake to Reliance

RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.

The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less